THERE is now more choice for entry-level broadband surfers.

StarHub yesterday launched its unlimited 1Mbps broadband subscription called MaxOnline SurfLite. This plan costs $26.96 a month and comes with a free modem. Customers must sign a two-year contract.

Other basic unlimited plans include Pacific Internet's 512kbps service at $24.56 a month and SingNet's 1Mbps line at $30.52.

SurfLite marks a new milestone for StarHub which has traditionally focused on higher speed plans because of the speed advantage cable modem technology has over SingNet's phone line-based asymmetric digital subscriber line (ADSL) technology.

Experts feel there are a few possible reasons behind StarHub's move.

One is that StarHub's broadband growth has slowed. Its subscriber base grew 11 per cent in the first nine months of last year, but it increased only 4 per cent in the same period this year.

Mr Soh Siow Meng, senior analyst with research firm Current Analysis, said the growth potential for higher-end users may be close to saturation.

'It's a good move by StarHub to reach out to the lower-end consumers,' he added.

While this would affect StarHub's average revenue per user, it will increase the company's overall revenue, said Mr Soh.

Another possible reason is that StarHub wants to target the 7,000 users of SingTel's 'no-monthly-subscription' dial-up service whose accounts will be terminated by the end of March next year.